Accountability and taxation: Experimental evidence
Ingrid Hoem Sjursen ()
Additional contact information
Ingrid Hoem Sjursen: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway, https://www.snf.no/Medarbeidere/Ingrid-Hoem-Sjursen.aspx
No 24/2018, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics
The Rentier State Hypothesis states that taxation promotes government accountability. The argument is that citizens demand more accountability for spending of tax revenue than for spending of windfall revenue (e.g., natural resource revenue). This paper presents evidence from a between-subject experiment that tests the effect of taxation on demand for accountability and the underlying mechanisms explaining this effect. The design focuses on two main features that distinguish tax from windfall revenue: Tax revenue is produced by citizens' work and has been in their possession before being collected as tax. These features are theorized to increase the salience of fairness considerations in public service provision, and this increased salience of fairness is in turn hypothesized to increase demand for accountability. The main finding is that taxation causes a higher demand for accountability when both features of taxation are present. This result is evidence in support of the Rentier State Hypothesis.
Keywords: Taxation; experiment; fairness; behavioral economics; accountability (search for similar items in EconPapers)
JEL-codes: C91 D63 D90 H27 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://brage.bibsys.no/xmlui/handle/11250/2573600 Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hhs:nhheco:2018_024
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Karen Reed-Larsen ().